“Unlicensed dealers don’t offer warranties on their second-hand vehicles that are required by law, so consumers who have mechanical issues after their purchase from these illegal operators may find it difficult to get any redress,” Mr Hillyard said.

“The vehicles may also be sub-standard in quality and pose a safety risk to the occupants.

“The activities of backyard operators create an uneven playing field and undermine the integrity of the regulation of the industry.

“Consumers should not do any business with unlicensed motor vehicle dealers and report them to Consumer Protection.”